How to Do a Comparative Market Analysis of Your Home
A Guide to Home Value with Comparative Market Analysis
Comparative market analysis focuses on the homes in your surrounding area and how they compare to yours in value. This will provide the seller, buyer, or real estate agent with a reasonable value for purchasing or pricing your property. Here is a 5 step guide explaining how you can use comparative market analysis to value your own home.
1. Set Criteria
List out the following criteria when comparing properties.
Type of Property – Compare homes to homes and condos to condos.
Location – Look at the same neighborhood and school district when possible.
Size – Square footage comparable should be within 15% of your home.
Age and Style – Similar styles and age groups.
Beds/Baths - Compare homes with similar number of bedrooms and baths when possible.
Date of Sale – As recent as possible, within 3 months or a max of 6 months.
Condition – Use tools online such as Google Street to judge the condition of the area with comparable.
Lot Size – Use comparable with similar lot sizes as yours.
2. Locate Homes
Sites such as Movoto, Redfin, and Zillow can help with locating homes within your area.
3. Compare Homes
When comparing homes, be sure to keep the above criteria in mind. If the home has to many bedrooms or is to big than it cannot be an effective comparable.
4. Identify Best Matches
Look for homes that just sold or the same type to identify the best matches in preforming comparables with.
5. Determine Value
Estimate the value based on your best matches used. Normally these vary in price between tiers which means your home should fit within that spectrum as well.
The New Popularity with Renting It seems as if the mortgage crisis not only saw a drop in home value, but resulted in individual preferences leaning towards the desire to rent versus own a home. What... More
The Rental Market Around the U.S. As people relocated from coast to coast, or any state in between, the rental market is priced at various cost levels. Here is a look at some of the most expensive and... More
Healthiest Real Estate Markets for 2013 The housing market this year is showing a lot of promise as home prices rise 4.9% nationwide. Based on the median rent and sale prices nationwide, here is a... More
Leasing to Millennials With an estimated 8 million Gen Y renters hitting the marketplace in the near future, prepare yourself to accommodate these informed and technologically advanced prospects.... More
Renting in the UK Renting offers its own list of benefits and down slides. Here is a look at unspoken rules to follow when renting in the UK. Location Don’t put all your faith in a single location.... More
Apartment Renting Trends As renting grows in popularity, trends are bound to change. The Renting Demographic Over 75 million baby boomers are looking to downsize into urban apartments to live a... More
The 10 Most Romantic Cities in the U.S. A listing of the ten most romantic cities in the United States. These cities not only show strong housing markets, but are increasingly considered highly... More
Rent or Own? In today’s economy, the housing market can seem like a scary place. Before making your decision to either rent or own, here is a listing of the pros and cons of either option. Pros of... More
Commercial Leasing vs. Purchasing If you are looking at developing equity for your business, first consider your options of leasing versus purchasing commercial property. Performing market research in... More